The SEC has reached a settlement with Rainberry (formerly Bittorrent) to resolve a 2023 fraud and market manipulation case, marking a significant shift in U.S. crypto enforcement.
Rainberry Inc., a cryptocurrency firm previously known as Bittorrent, has agreed to pay a $10 million civil penalty to resolve allegations of market manipulation and unregistered securities offerings, according to court documents made public on March 5.
As part of the settlement, the U.S. Securities and Exchange Commission (SEC) moved to dismiss all personal claims against Justin Sun, the billionaire founder of the Tron blockchain, as well as the Tron Foundation and the Bittorrent Foundation. The dismissal was filed “with prejudice,” meaning the regulator cannot bring the same charges again.
The agreement marks the conclusion of a high-profile legal battle that began in March 2023. At the time, federal regulators accused Sun and his companies of orchestrating a scheme to sell unregistered crypto asset securities—specifically Tronix ( TRX) and Bittorrent (BTT) tokens. The SEC also alleged that Sun directed employees to engage in more than 600,000 “wash trades” to create a false impression of active trading and market demand.
While Rainberry will pay the multi-million dollar fine, the settlement includes no admission or denial of the allegations by any of the defendants.
Reacting to the announcement, Sun vowed to continue operating in the United States and to assist the commission in developing a regulatory framework.
“Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward,” Sun wrote on X.
The resolution of the case against Sun is the latest in a series of retreats by the SEC, which, under the Trump administration, has largely abandoned its aggressive “regulation by enforcement” posture toward the digital asset industry.
Sun joins a growing list of high-profile industry figures who have seen their legal battles dropped or resolved through settlements. These include Coinbase CEO Brian Armstrong, Uniswap founder Hayden Adams, and Kraken co-founder Jesse Powell, all of whom have benefited from the agency’s pivot toward a more collaborative regulatory framework.
Meanwhile, in addition to the fine, Rainberry is now under a permanent injunction prohibiting future violations of the anti-fraud and registration provisions of federal securities laws.
The settlement comes after the case was temporarily paused in early 2025 following a shift in the political and regulatory landscape in Washington. Critics of the deal have characterized it as a lenient resolution, while supporters see it as a sign of a recalibrated approach to cryptocurrency enforcement.
The final judgment remains subject to approval by U.S. District Judge Edgardo Ramos.
- What was Rainberry Inc.’s penalty for market manipulation? Rainberry Inc., formerly known as Bittorrent, has agreed to pay a $10 million civil penalty to resolve allegations related to market manipulation and unregistered securities.
- What does the settlement mean for Justin Sun and his foundations? The U.S. SEC agreed to dismiss all personal claims against Justin Sun, the Tron Foundation, and the Bittorrent Foundation “with prejudice,” preventing future charges on the same issues.
- What were the main allegations against Rainberry and Justin Sun? Federal regulators accused Sun of selling unregistered securities and instructing employees to conduct over 600,000 wash trades to misrepresent trading activity.
- What impact does this settlement have on cryptocurrency regulations? The agreement signals a shift towards a more collaborative regulatory approach by the SEC and will require Rainberry to adhere to a permanent injunction against future securities law violations.
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